Term Deposit

A term deposit is a bank account that gives you a fixed interest rate for a predetermined period, usually from one to three years. Basically, you commit your funds to the bank for a certain period and get paid in the form of competitive interest. Longer terms typically carry higher interest rates. Unlike a savings account, funds in a term deposit are not at call, which means you cannot withdraw them before the term is over. You usually have to pay a fine if you break the term or withdraw prematurely.